Strategy consulting is a lucrative and competitive field. Consultants work for prestigious firms like McKinsey, Bain, BCG, and provide advice to top executives at major companies. But how much do strategy consultants actually make?
Average Salary
According to Glassdoor, the average base salary for an entry-level consultant at MBB (McKinsey, BCG, Bain) is approximately $90,000. At mid-tier firms like Deloitte and Accenture Strategy, base salaries tend to be $10,000 to $20,000 lower. Base salaries increase with each level of seniority:
| Position | Average Base Salary |
|---|---|
| Associate/Analyst | $90,000 |
| Consultant | $110,000 |
| Project Leader/Manager | $150,000 |
| Principal/Partner | $250,000+ |
On top of their base salary, consultants receive bonuses that are typically 20-100% of their base pay. Bonuses are awarded based on personal performance, team performance, and firm performance. All things considered, total compensation for an average MBB consultant over the course of their career is approximately:
- Associate: $110,000 – $140,000
- Consultant: $135,000 – $180,000
- Project Leader: $200,000 – $300,000
- Principal/Partner: $500,000 – $5,000,000+
Salaries by Firm
Salaries can vary significantly between firms. According to managementconsulted.com, here are the average starting salaries for new undergrad hires:
| Firm | Starting Salary |
|---|---|
| McKinsey | $90,000 |
| Bain | $90,000 |
| BCG | $90,000 |
| Deloitte | $77,000 |
| Strategy& | $72,000 |
| Monitor Deloitte | $72,000 |
| Parthenon | $72,000 |
| LEK | $70,000 |
As you can see, MBB firms pay about $15,000 more than second-tier firms. This salary difference remains as consultants advance in their careers.
Salaries by Location
Salaries also range based on location. Firms pay the highest salaries in the most expensive, competitive markets:
| City | Average Salary |
|---|---|
| New York City | $10,000 – $20,000 above average |
| San Francisco | $10,000 above average |
| Washington DC | Average |
| Chicago | Average |
| Boston | Average |
| Los Angeles | $5,000 – $10,000 below average |
| Houston | $10,000+ below average |
If you want to earn top dollar as a consultant, NYC and San Francisco offer the highest salaries.
Factors That Influence Salary
Several factors impact a strategy consultant’s pay, beyond their seniority and firm:
Undergraduate Major and GPA
Majors like engineering, economics, mathematics, and physics are highly sought after. Students from top universities with these technical majors can earn $5,000 – $10,000 more. GPA also matters, as firms use it to filter and compare candidates. Each firm has a target GPA (typically 3.5+ for MBB). The higher your grades, the better.
Graduate Degrees
Having an MBA boosts salary potential, especially if earned at a top program like Harvard, Stanford, or Wharton. Consultants with elite MBAs can start at $30,000+ above undergraduate hires. Other degrees like computer science or data science can also command higher salaries in consulting.
Specialized Expertise
Focused knowledge in an industry or function is handsomely rewarded. For example, consultants with engineering experience make more in operations/supply chain consulting. Finance backgrounds earn more in corporate finance consulting. Niche expertise allows you to better serve certain clients and projects.
Firm Prestige and Rank
As mentioned earlier, MBB firms pay significantly more than competitors. Within MBB, McKinsey is considered the most prestigious, followed by Bain and BCG. Top performers from lesser-known firms may take pay cuts to join an MBB firm for the brand name.
Client Billings and Profitability
Consultants get bonuses based on how much revenue they bring to their firm. Those who work on profitable projects for high-paying clients earn bigger bonuses. Underperforming consultants get paid less.
Industry
Some industries pay consulting firms better than others. High-paying sectors include finance, technology, pharmaceuticals, energy, and media. Comparatively, government and non-profit are less lucrative.
Travel Requirements
Consultants who travel frequently to desirable locations are paid more to be on the road. For example, a project in Milan offers higher danger pay than one in Cleveland.
Salaries at Major Firms
Here is a more detailed breakdown of salary ranges at the largest strategy consulting firms:
McKinsey
- Business Analyst (Undergrad): $90,000 – $110,000
- Associate (MBA/PhD): $155,000 – $175,000
- Engagement Manager: $200,000 – $250,000
- Associate Principal: $275,000 – $350,000
- Principal: $450,000 – $600,000
- Director/Senior Partner: $750,000 – $5,000,000+
Bain
- Associate Consultant: $90,000 – $100,000
- Consultant: $110,000 – $125,000
- Manager: $165,000 – $185,000
- Senior Manager: $210,000 – $240,000
- Principal: $300,000 – $450,000
- Partner: $750,000 – $2,000,000+
BCG
- Consultant: $90,000 – $100,000
- Project Leader: $140,000 – $160,000
- Principal: $280,000 – $340,000
- Partner/Managing Director: $450,000 – $1,200,000+
Deloitte
- Analyst: $70,000 – $80,000
- Consultant: $90,000 – $110,000
- Senior Consultant: $115,000 – $140,000
- Manager: $165,000 – $215,000
- Senior Manager/Director: $250,000 – $300,000
- Partner: $500,000+
Conclusion
In summary, strategy consultant salaries range from around $70,000 for entry-level positions to over $1,000,000 for senior partners. Pay varies significantly by firm, location, expertise, client billings, and more. The top bracket is reserved for those at prestigious firms like MBB, with specialized knowledge and clients, who have risen to senior leadership ranks.
